Add as a preferred source on GoogleDubai’s VARA Uses Fictional Case to Flag VASP Client-Fund Risks
The example involved a client who could not withdraw deposits after a provider used them during financial trouble. VARA said it plans safeguards for client money.
Dubai’s Virtual Assets Regulatory Authority (VARA) used a fictional example involving a client named Maryam to highlight how a virtual asset service provider (VASP) could put deposits at risk during financial distress, while signaling plans for safeguards.
In the scenario, Maryam deposited funds for future transactions. After the VASP faced financial difficulties, it used her deposits for its own needs, leaving her unable to withdraw the money.
VARA presented the case as hypothetical, not as a reported client-loss incident. The authority said it plans safeguards to protect client funds.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.